PARRIS N. GLENDENING, Governor Ch. Ill

(1) TO PAY ELIGIBLE INSTTTUTIONS OF HIGHER EDUCATION IN
ACCORDANCE WITH THE BOARD'S OBLIGATIONS UNDER ADVANCE PAYMENT
CONTRACTS;

(2) TO REFUND MONEY ON THE TERMINATION OF ADVANCE PAYMENT
CONTRACTS; AND

(3) TO PAY THE OPERATING EXPENSES OF THE BOARD.

18-1907.

(A) IN THIS SECTION. "FIDUCIARY" MEANS:

(1) A MEMBER OF THE MARYLAND HIGHER EDUCATION INVESTMENT
PROGRAM BOARD: OR

(2) AN EMPLOYEE OF THE MARYLAND HIGHER EDUCATION
INVESTMENT PROGRAM WHO EXERCISES ANY DISCRETIONARY AUTHORITY OR
CONTROL OVER:

(I) THE MANAGEMENT OR ADMINISTRATION OF THE PROGRAM:

OR

(II) THE MANAGEMENT OR DISPOSITION OF THE ASSETS OF THE

PROGRAM.

(B) A FIDUCIARY SHALL DISCHARGE THE FIDUCIARY'S DUTIES WITH
RESPECT TO THE PROGRAM:

(1) SOLELY IN THE INTEREST OF THE PARTICIPANTS:

(2) FOR THE EXCLUSIVE PURPOSES OF PROVIDING BENEFITS TO THE
PARTICIPANTS AND PROVIDING REASONABLE EXPENSES OF ADMINISTERING THE
PROGRAM:

(3) WITH THE CARE, SKILL, PRUDENCE. AND DILIGENCE UNDER THE
CIRCUMSTANCES THEN PREVAILING, THAT A PRUDENT PERSON ACTING IN A LIKE
CAPACITY AND FAMILIAR WITH SUCH MATTERS WOULD USE IN THE CONDUCT OF
AN ENTERPRISE OF A LIKE CHARACTER WITH LIKE AIMS;

(4) BY DIVERSIFYING THE INVESTMENTS OF THE PROGRAM SO AS TO
MINIMIZE THE RISK OF LARGE LOSSES, UNLESS UNDER THE CIRCUMSTANCES IT IS
CLEARLY PRUDENT NOT TO DO SO;

(5) IN ACCORDANCE WITH THE LAWS GOVERNING THE PROGRAM; AND

(6) IN ACCORDANCE WITH THE DOCUMENTS AND INSTRUMENTS
GOVERNING THE PROGRAM TO THE EXTENT THAT THE DOCUMENTS AND
INSTRUMENTS ARE CONSISTENT WITH THIS SUBTITLE

(C) IN EXERCISING AUTHORITY, CONTROL OR DISCRETION WITH RESPECT
TO THE PROGRAM, A FIDUCIARY MAY NOT:

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